Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
Yes, long-term care insurance policies cover the costs of being in an authorized nursing home up to the policy limits (maximum daily, or maximum monthly dollars) indicated in the policy, plus any additional purchases of coverage, and any automatic benefit increases, if such riders were purchased.
Today's long-term care insurance policies also cover other types of long-term care, including care costs at home, in an adult day-care center, and in authorized residential (also known as assisted living) facilities. Some policies also allow for the payment of routine domestic care such as house cleaning.
A policy that covers all of these potential care costs is called a "comprehensive" long-term care policy. Very few facility-only or home care only policies are sold these days.
Costs of care in a facility can be paid in one of two ways: 1) the caregiver or policyowner sets up automatic monthly payments directly to the facility from the insurance company with any additional charges above the maximum daily or monthly benefit of the policy being paid out-of-pocket, or 2) the caregiver or policyowner receives a a check to pay for facility service charge after being billed by the facility and having paid that bill out-of-pocket.
There are some policies that pay cash directly to the insured in the amount of the maximum monthly benefit regardless of costs incurred. This is called an "indemnity policy" and there are very few carriers that offer this type of coverage any longer.
If the insured lives beyond the extent of the pool of money provided by the insurance company, the insured must pay for care out-of-pocket to remain in the facility. If the person has purchased a "partnership" plan of long-term care and exhausts the funds of that policy, Medicaid (Medical in CA) will take over payments of care as long as the amount paid out by the policy is greater than the the non-excludable assets of the insured.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Does Long Term Care cover a nursing home? In most cases the answer is yes. However coverage will be created by what you choose for your plan design. In most all cases nursing home coverage is a base aspect of any plan, but you can choose in many plans to include assisted living or home care along with nursing homes.
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Today's long-term care insurance policies also cover other types of long-term care, including care costs at home, in an adult day-care center, and in authorized residential (also known as assisted living) facilities. Some policies also allow for the payment of routine domestic care such as house cleaning.
A policy that covers all of these potential care costs is called a "comprehensive" long-term care policy. Very few facility-only or home care only policies are sold these days.
Costs of care in a facility can be paid in one of two ways: 1) the caregiver or policyowner sets up automatic monthly payments directly to the facility from the insurance company with any additional charges above the maximum daily or monthly benefit of the policy being paid out-of-pocket, or 2) the caregiver or policyowner receives a a check to pay for facility service charge after being billed by the facility and having paid that bill out-of-pocket.
There are some policies that pay cash directly to the insured in the amount of the maximum monthly benefit regardless of costs incurred. This is called an "indemnity policy" and there are very few carriers that offer this type of coverage any longer.
If the insured lives beyond the extent of the pool of money provided by the insurance company, the insured must pay for care out-of-pocket to remain in the facility. If the person has purchased a "partnership" plan of long-term care and exhausts the funds of that policy, Medicaid (Medical in CA) will take over payments of care as long as the amount paid out by the policy is greater than the the non-excludable assets of the insured.